NEW DELHI 2 January 2020: Indian Finance Minister Nirmala Sitharaman has announced a huge $1.5 trillion plan to build infrastructure in the next five years.
The announcement is part of Prime Minister Narendra Modi’s promise of a $5-trillion economy for the country by 2024.
Sitharaman said that a committee formed after Modi announced his vision in August would identify the big infrastructure projects. These are expected to include new rail links, roads, and social infrastructure necessary to attract critical investments from oil exporting nations and big economies around the world, said Wam.
Her announcement envisages a National Infrastructure Pipeline, (NIP), which aims to build new ports and airports at a cost of Rs2.5 trillion, projects in which Gulf investors have shown interest previously.
Rs3.2 trillion will be the outline for digital infrastructure projects while Rs16 trillion is planned for irrigation, farming and food processing. Public-private partnerships will be key to today’s announcement with private companies contributing about 25 percent of the investments. The rest will come from the central government and Indian states.
The proposals are aimed at boosting the country’s growth rate from the Reserve Bank of India latest growth forecast of five percent for the fiscal year 2019-2020.